With a staggering €600 billion turnover, Ireland’s SME sector stands as a powerhouse—on par with global giants like Amazon and Walmart. Employing nearly one million people, SMEs form the backbone of the Irish economy. But scaling a business while navigating economic shifts and sustaining growth requires more than just resilience; it demands strategic leadership, capital investment and agility.

At IMI’s recent Senior Leaders Breakfast Briefing, industry leaders Oonagh O’Hagan (Meaghers Pharmacy), Stan Buckley (FSW and Fleetwood Paints), and Mark Flood (Renatus Capital Partners) shared their insights on what it takes to drive SME success in Ireland today.

Leadership in SMEs: Growth Through Agility and Talent

For Oonagh O’Hagan, leadership has been a journey of resilience and reinvention. When she bought Meaghers Pharmacy in 2001, it was a one-person operation. Oonagh ran everything herself—both the dispensary and retail side – and each new pharmacy acquisition brough fresh challenges. Over time, she built a strong leadership team by nurturing internal talent while also bringing in external expertise from the corporate world.

“In 2008, the financial crisis forced us to reassess our business model. We were 90% dispensary, 10% retail, and had to rethink how we provided value,” she explained. “We started nurturing talent from within—pharmacists with leadership potential. But we also recognised gaps and brought in people from the corporate world with specialist skills.”

Stan Buckley emphasised the importance of succession planning in family businesses, noting that only 4% of Irish family businesses make it to a fourth generation. For Fleetwood Paints—a 75-year-old, multi-generational family business – balancing the family legacy with professional leadership has been key. “It’s not about keeping leadership in the family—it’s about finding the most capable person for the job,” he said, stressing the importance of what he calls the ‘trusted advisor’ model.

The challenge of attracting and retaining top talent remains a critical issue for SMEs. O’Hagan pointed to the need for solution-focused, data-driven leaders with emotional intelligence, while Buckley highlighted the importance of trusted advisors who can bridge the gap between ownership, executive teams and boards.

Capital and Investment: Scaling Through Strategic Funding

Renatus Capital Partners, an SME itself, has walked the entrepreneurial journey—starting with no salaries, a small fund and just three investments. Today, it manages multiple funds and has a portfolio of 12 businesses, including Boojum, which has expanded from five stores to 16 and is now breaking into the UK market.

Mark Flood stressed that people remain the most crucial factor in investment decisions. “What do we look for in a company? People, people, people!” he said. “We look for solution-focused people, those who can use data to make decisions—even if they make the wrong decision, as long as they learn from it. Agility, critical thinking and emotional intelligence are vital in today’s landscape.”

Renatus focuses on businesses with €2-3 million in EBITDA or strong recurring revenue, emphasising the importance of leadership quality in scaling companies.

Digital Transformation: From Risk to Competitive Advantage

Digital transformation has been a game-changer for SMEs. Meaghers Pharmacy, a first mover in digital, ventured into e-commerce in 2014 in what was seen as a risky move. Initially, it operated as a click-and-collect model, but as customers from across Ireland engaged via social media, demand grew.

“The first two years online, we lost money and made a lot of mistakes,” O’Hagan admitted. “But when COVID hit, we had six years of digital experience behind us and the infrastructure in place. Overnight, we were able to scale, launching an online doctor service and fulfilling international orders.” This pivot not only sustained the business but also enhanced its brand globally.

Meaghers also leveraged data to shift from ‘sickcare’ to ‘healthcare’, offering screening services, flu vaccines and evidence-backed wellness products.

Lessons for SME Leaders:

• Be proactive, not reactive. Don’t wait for a crisis to rethink your business model.
• Listen to your customers. Market research revealed that customers wanted preventative healthcare, leading Meaghers to pivot towards wellness.
• Digital isn’t just about selling—it’s about scaling relationships. Small, personal touches like including a pack of Tayto in international orders built long-term customer loyalty for Meaghers.

For Fleetwood Paints, sustainability is a core focus. Their 40-acre site in rural Cavan is not just a manufacturing hub—it’s an environmental commitment. Beekeeping initiatives, community outreach, local employment initiatives and strict water table management are just some of the company’s sustainability efforts.

However, compliance challenges are growing. The EU’s Corporate Sustainability Reporting Directive (CSRD) originally applied to businesses with 1,000+ employees, but Fleetwood is voluntarily implementing it anyway—CSR without the ‘D.’

“Too much focus on data collection can take your eye off the ball,” Stan warned. “We want to do the right thing, but we need to ensure regulation doesn’t become an unnecessary burden.”

One possible solution? AI-driven regulatory compliance—a concept Fleetwood is exploring to streamline data collection without losing sight of sustainability goals and ESG efforts, which must align with practical business realities.

The Future of SMEs: Balancing Consolidation and Agility

Across all industries, macro consolidation is reshaping the landscape. Whether in retail, finance or manufacturing, businesses are consolidating, leading to fewer but larger players. While scale brings efficiency, it also poses challenges for SMEs.

“SMEs often struggle with automation and efficiency at scale,” Flood observed. “But we need to ensure that decision-making remains grounded in local knowledge and frontline expertise, rather than being dictated solely by boardroom strategies. You don’t want decisions made in boardrooms by people who don’t understand the day-to-day realities on the ground.”

Buckley echoed this sentiment, emphasising the need for long-range thinking. While Fleetwood Paints once planned five years ahead, they now review their strategy through 2027 and beyond, adjusting quarterly for technological and market shifts. Fleetwood operates on two planning cycles—business strategy (to 2027) and shorter-term digital transformation cycles (quarterly reviews).

“The world is changing too fast to set a five-year strategy and forget about it,” Stan explained. “AI is creeping in, digital transformation moves rapidly, and the way employees view work has shifted. You have to adapt continuously.”

Key Takeaways for SME Leaders

1. Invest in Leadership—SMEs thrive when they balance internal talent development with external expertise. Leadership is about getting the mix right.
2. Embrace Digital Transformation—The earlier a business experiments with digital, the stronger its position when disruptions occur. Digital transformation isn’t optional—it’s a competitive advantage.
3. Prioritise Sustainability—ESG initiatives are not just regulatory requirements but also brand differentiators and community-building tools.
4. Be Agile and Data-Driven—Decision-making should be informed by data but not paralysed by it. Learning from mistakes is key.
5. Plan for the Long-Term—While economic and technological shifts require short-term adaptability, SMEs must also set strategic goals for sustained growth. It’s about getting the balance right between long-term planning and short-term agility.

For Irish SMEs, the path to success is paved with strong leadership, strategic funding and the agility to evolve with market demands. As the sector continues to fuel Ireland’s economy, those who combine adaptability with a long-term vision will be best positioned to thrive.

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